Senate wants FG’s 40% share in DisCos sold to foreign investors

The senate has advised the federal government to divest its 40% stake in electricity distribution companies (DisCos) to foreign investors.

Senate President Ahmed Lawan gave this advice in Abuja when he received the management team of the Transmission Company of Nigeria (TCN) led by Usman Mohammed, its managing director.

In a statement by the TCN, Lawan said experts in the field should be given an opportunity to invest in the sector.

“The 40 percent holding of the Federal Government as stipulated in the Power Privatisation Act 2005 may also be more beneficial to the nation if it is sold to foreign investors with technical know-how,” the statement read.

He stated that it is not in the interest of the government to keep disbursing bailout funds to DisCos without a commensurate improvement in the power supply.

Lawan also assured the TCN of the senate’s support for its proposed recapitalisation of DisCos and the transmission rehabilitation and expansion programme (TREP).

He said the programmes should be carried out with a holistic picture of how power supply challenges would be resolved once and for all.

Lawan also expressed displeasure with the report on supervisory control and data acquisition (SCADA) contracts awarded three times in the past without success.

He called for a more stringent process of awarding contracts that would allow only competent firms qualified to execute the project.